If you call the IRS to set up your own payment plan, the IRS is required to set up a budget for you which can be difficult to “live with.” The IRS Living Standards do not allow you to spend more than their housing and utility amounts which are very low, especially in Maricopa County. Almost 7 out of 10 clients are spending more per month than the IRS standard allows for Glendale Arizona residents on their vehicles. Other miscellaneous expenses such as credit cards, contributing to your 401(k), charitable donations, vacations, children’s sports, salon expenses, etc. our outside of the IRS living standards.
There are ways to get past the IRS Living Standards. These include:
- Streamlined Agreements
- One year plan
- Five year plan
- Discharging taxes in a Chapter 7 bankruptcy
- Chapter 13 payment plan bankruptcy
Each of these options has its pros and cons, but it is very probably that one of them will fit your budget without running into the IRS Living Standards “wall.” Scott Allen E.A. has the expertise to help you with your decision process and evaluate your options. Scott Allen E.A. offers a free consultation and can be reached at 480-926-9300. He will make your appointment a great day for you!